Catalogue companies have the classic example of perfectly inflexible prices because once they print and distribute their catalogues, they are committed to selling at the prices as printed. a. If a catalogue company finds its inventory of sweaters rising, what does that say about the demand for sweaters? Demand for sweaters wa v (Click to select) as expected unexpectedly high unexpectedly low If the company could cha eaters, would it raise the price, lower the price, or keep the price the same? The company would ( (Click to select) ). b. Given that the company cannot change the price of sweaters, consider the number of sweaters it orders each month from the company that makes them. If inventories become very high, will the catalogue company increase, decrease, or keep orders the same? The catalogue company will (Click to select) If the catalogue company is one of the major buyers of the manufacturing firm, how will the catalogue company's decision about orders affect the manufacturing firm's output and employment? Employment will ( (Click to select) ) and output will ( (Click to select)
Catalogue companies have the classic example of perfectly inflexible prices because once they print and distribute their catalogues, they are committed to selling at the prices as printed. a. If a catalogue company finds its inventory of sweaters rising, what does that say about the demand for sweaters? Demand for sweaters wa v (Click to select) as expected unexpectedly high unexpectedly low If the company could cha eaters, would it raise the price, lower the price, or keep the price the same? The company would ( (Click to select) ). b. Given that the company cannot change the price of sweaters, consider the number of sweaters it orders each month from the company that makes them. If inventories become very high, will the catalogue company increase, decrease, or keep orders the same? The catalogue company will (Click to select) If the catalogue company is one of the major buyers of the manufacturing firm, how will the catalogue company's decision about orders affect the manufacturing firm's output and employment? Employment will ( (Click to select) ) and output will ( (Click to select)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:12
Catalogue companies have the classic example of perfectly inflexible prices because once they print and distribute their catalogues,
they are committed to selling at the prices as printed.
a. If a catalogue company finds its inventory of sweaters rising, what does that say about the demand for sweaters?
Demand for sweaters wa v (Click to select)
as expected
If the company could cha
unexpectedly high
eaters, would it raise the price, lower the price, or keep the price the same?
unexpectedly low
The company would ( (Click to select) )
b. Given that the company cannot change the price of sweaters, consider the number of sweaters it orders each month from the
company that makes them. If inventories become very high, will the catalogue company increase, decrease, or keep orders the same?
The catalogue company will (Click to select) )
If the catalogue company is one of the major buyers of the manufacturing firm, how will the catalogue company's decision about
orders affect the manufacturing firm's output and employment?
Employment will (Click to select) and output will (Click to select)
Transcribed Image Text:12
Catalogue companies have the classic example of perfectly inflexible prices because once they print and distribute their catalogues,
they are committed to selling at the prices as printed.
a. If a catalogue company finds its inventory of sweaters rising, what does that say about the demand for sweaters?
Demand for sweaters was ( (Click to select) ).
If the company could change the price of sweaters, would it raise the price, lower the price, or keep the price the same?
The company would (Click to select) :
b. Given that the company cannot change the price of sweaters, consider the number of sweaters it orders each month from the
company that makes them. If inventories become very high, will the catalogue company increase, decrease, or keep orders the same?
The catalogue company will (Click to select) +.
If the catalogue company is one of the major buyers of the manufacturing firm, how will the catalogue company's decision about
orders affect the manufacturing firm's output and employment?
Employment will( (Click to select) +) and output wi v (Click to select)
rise
stay the same
fall
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